I couldn’t help but reflect on the flash crash of 2010 last night (here are my blogs for May, 2010). On the day of the flash crash, I had an endoscopy done, to make sure I wasn’t dying of stomach cancer (I was going through a period of hypochondria). It just so happened that 15% of my book was long VXX into the melee. After seeing what happened that day, I bought more VXX, eventually upping my position to more than 30% of my book. My bet was we’d retest the flash crash lows, and we did. I ended up making 50% on that position, setting the stage for terrific 2010 asset performance.
Unfortunately, VXX served as an albatross for me, during the dark days of 2011-2012. But we won’t delve into the negatives this morning.
I can’t help but to admire the craziness of our beloved elected officials. We are assuming they won’t force us to default on our debt, mainly because it’s crazy to do so.
And?
These guys are lunatics, completely detached from reality and business. The more I hear these trolls talk, the more I worry about them pushing us over the cliff. They just don’t care about the consequences, plain and simple.
I can see this market getting very ugly, the closer we get to 10/17. The democrats refuse to negotiate, because they don’t care. The republicans, especially the tea party folks, aren’t afraid of defaulting on our debt. Do you know why?
THEY DON’T CARE about the real consequences, because they’re ideologues.
Do not try to understand why irrational people behave the way they do. I am starting to think riding this out may prove to be a very costly wait and may opt for the sidelines instead.
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That is the nightmare scenario no doubt (no Dreamchasers 3).
Its all bluster. The market won’t be fooled again.
All the news flow has been pro-clam lately…isn’t that all that matters?
yet you stay 100% long?? when do you bail and go to cash?
sorry..got ahead of myself…I see you are now “contemplating” the sidelines..at what point in time do you actually head over to the sidelines?? what will be your tell??
Y’know, the Street gets a bad rap for being greedy, but at least it’s predictably greedy. These fucktards on the Hill are the dangerous kind of greedy: unpredictably greedy. They don’t care, they don’t have to, and many on both sides would burn down the kingdom in order to rule over the ashes.
I wish I knew whether the moderate GOP reps, who fill the role of “swing voters” during this month of bullshit, have positioned themselves and their families net long or net short.
Disclosure: ~60% cash, mostly-sidelined.